NITI Aayog Charts Roadmap For India’s USD 1 Trillion Chemical Industry
NITI Aayog on Thursday released its report “Chemical Industry: Powering India’s Participation in Global Value Chains”. The report offers an extensive analysis of India’s chemical sector, highlighting both opportunities and challenges, and outlining a pathway for positioning India as a key player in global chemical markets.
The global chemical industry is undergoing a major transformation, driven by shifting supply chains, demand for specialty and green chemicals, and heightened focus on innovation and sustainability.
India’s chemical sector, while significant in size and GDP contribution, remains fragmented and constrained by infrastructure gaps, regulatory inefficiencies, and low R&D intensity.
India’s 3.5 per cent share in global chemical value chains and its chemical trade deficit at USD 31 billion in 2023 underscore its high dependence on imported feedstock and specialty chemicals.
However, with targeted reforms encompassing a comprehensive range of fiscal and non-fiscal interventions will enable India to have a USD 1 trillion chemical sector and achieve 12 per cent GVC share by 2040, thus becoming a global chemical powerhouse.
India’s chemical sector faces several structural challenges that constrain its global competitiveness. A key issue is the country’s heavy reliance on imported feedstock, which contributed to a USD 31 billion trade deficit in 2023, stemming from limited domestic backward integration.
Infrastructure gaps, outdated industrial clusters, and high logistics costs have created a cost disadvantage compared to global peers. Compounding this, India’s low investment in R&D, with only 0.7 per cent of investment against the global average of 2.3 per cent, hampers indigenous innovation in high-value chemicals.
Regulatory delays, especially in environmental clearances, further stifle industrial agility. Additionally, the sector is hampered by a 30 per cent shortfall in skilled professionals, particularly in emerging areas such as green chemistry, nanotechnology, and process safety.
NITI Aayog’s report outlines several strategic fiscal and non-fiscal interventions aimed at enhancing India’s global competitiveness in the chemical sector.
(From ANI)
Also Read: Kill Bill and Reservoir Dogs Actor, Michael Madsen, Died At 67
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
Always bold with her opinions, she also never misses the chance to weave in expert voices, keeping things balanced and insightful. In short, Aishwarya brings a fresh, sharp, and fact-driven voice to every story she touches.
Stock market outlook today, May 13: Sensex and Nifty remain under pressure after Tuesday’s massive…
Prateek Yadav, the younger son of late Samajwadi Party founder Mulayam Singh Yadav, has passed…
At the 79th Cannes Film Festival, jury member Paul Laverty criticized Hollywood for allegedly sidelining…
